First National in Strasburg, Va., has agreed to buy Bank of Fincastle in Virginia.
The $944 million-asset First National said in a press release Thursday that it will pay $31.6 million in cash and stock for the $256 million-asset Bank of Fincastle. The deal, which is expected to close in the third quarter, priced Bank of Fincastle at 105% of its tangible book value.
“With this combination, First Bank will extend its reach from the top of Virginia south down the I-81 corridor to Roanoke, ensuring our small and [midsize] Virginia markets continue to be served by an independent Virginia community bank,” Scott Harvard, First National’s president and CEO, said in the release.
“Together, our team of bankers will deliver unparalleled service to our customers and communities and continue to make those communities better places to live and work,” he added.
Bank of Fincastle has six branches, $202 million of loans and $224 million of deposits.
Three directors from Bank of Fincastle will join First National’s board. Scott Steele, Bank of Fincastle’s president and CEO, will join First National as a regional president.
First National said it plans to cut about $2.9 million in annual expenses. It expects to incur roughly $4.2 million in merger-related expenses.
First National said it expects the deal will be about 10% accretive to earnings per share. It should take about five years for First National to earn back the deal’s expected 7% dilution to its tangible book value.
Piper Sandler and Nelson Mullins Riley & Scarborough advised First National. Janney Montgomery Scott and Godfrey & Kahn advised Bank of Fincastle. RP Financial was the fairness adviser.
"enter" - Google News
February 19, 2021 at 04:55AM
https://ift.tt/3uepxIW
First National to enter southwestern Virginia with Bank of Fincastle deal - American Banker
"enter" - Google News
https://ift.tt/2TwxTMf
https://ift.tt/3d6LMHD
Bagikan Berita Ini
0 Response to "First National to enter southwestern Virginia with Bank of Fincastle deal - American Banker"
Post a Comment